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Regular electricity access is a key element for the economic development and social welfare of rural areas. Decentralized energy generation has the advantage of using local resources, increasing employment and reducing transmission and distribution losses. Brazil is a tropical country, endowed with vast arable land, plentiful precipitation levels, and a large supply of human labour. Furthermore, it has strong regional distinctions with geographical, cultural and economical differences. Forestry and agriculture, important activities in the Brazilian economy, are dependent on local people and are deeply connected to traditions, nature and culture. Furthermore, these activities generate a significant amount of residues that could be used in conversion technologies for biomass, based on type, availability and market demand. When biomass were used to generate energy locally, community members could have business opportunities, improving local economy and life quality of individuals while diversifying the Brazilian energy matrix, which is mostly based on hydropower. Alternatives for implementing small-scale decentralized biomass schemes are dependent on the screening of the existing biomass supply chains, the implementation of adapted technologies for local conditions and the exploration of local resources. The present research carried out a detailed field work in order to evaluate the potential of Brazilian biomass in different regions. The author identified crucial needs, usual constraints and possible challenges of rural electrification and economic development in Brazil. Several case studies and social groups were investigated in the Federal States of Minas Gerais, São Paulo and Pará to identify different resource management strategies, which biomass technology was applied and the needs of the local population. It was concluded that the compaction of biomass to generate solid biofuels with uniform properties could be a cost-effective alternative for communities taking advantage of the resources available in the region to produce energy. Nevertheless, each case has to be considered on its own. It was concluded that energy supply and consumption should be addressed through integrated research. Scientific research should be focused on technological solutions for improving living standards and socio-economic development in rural areas. The implementation of new regulatory arrangements and a constant revision of the Brazilian energy policies are crucial for encouraging a national industry for renewables. It was also concluded that the cultural, geographical and socio-economic discrepancies of Brazil could involve challenges for the implementation of future projects, even when their development would provide benefits for Brazil as a whole.